Structural changes and growth factors of the ICT industry in Korea: 1995–2009

Jae Pyo Hong, Jeong Eun Byun and Pang Ryong Kim

Telecommunications Policy, 2016, vol. 40, issue 5, 502-513

Abstract: This study performs an Input–Output Structural Decomposition Analysis on the ICT industry in Korea between 1995 and 2009 to examine its structural changes and growth factors. According to the results of the structural change analysis, the ICT manufacturing field exhibited a deepening of the so-called jobless growth phenomenon. Although the output of the ICT manufacturing field grew dramatically, employment consistently decreased. In contrast, the ICT service field began to show a problem with reduced labor productivity. Although the ICT service field’s output experienced a slowdown in growth, employment experienced an exponential increase. According to the results of the growth factor analysis, the ICT industry׳s growth was fueled by export expansion, followed by consumption expansion, technological change, inventory expansion and investment expansion. However, import substitution of intermediate goods and end goods had negative effects on the ICT industry’s growth in Korea. In the industrial sector, the electronic component sector and broadcasting and telecommunication equipment sector experienced marked growth, and the electronic component sector scored the greatest contribution. Furthermore, in spite of the rapid growth in other ICT manufacturing sectors, the information equipment sector sank into stagnation, and the contribution of the ICT service sector was constantly decreasing.

Keywords: ICT industry; Structural changes; Growth factors; I–O SDA; Korea (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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DOI: 10.1016/j.telpol.2015.08.001

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